What is Happening in the Mortgage Market

The Good News

The Fed Lowered the Federal Funds Rate by 0.75% to a target range of 0% to 0.25%, and also lowered the Discount Rate by 0.75% to 0.50%. The Statement that followed the cut said that the Fed was prepared to take aggressive steps to revive the sagging US economy.

In the past, Mortgage Bonds (the instruments mortgage rates are based upon) have reacted negatively to Fed cuts as fears of inflation come to life. But the Fed stated that inflation pressures have diminished appreciably and expects inflation to moderate further in coming quarters. The Fed also announced plans to purchase mortgage backed securities in the near future, hence the reason home loan rates are improving.

The Not So Good News

With mortgage rates at historic lows home owners will race to the lenders to refinance. Buyers looking to take advantage of op portunities will be making offers. This huge demand will strain the lenders as it did in the previous refinance boom. The lenders have laid off thousands of workers and are ill prepared to deal with the volume. Allow yourself extra time for your transaction.

Envoy Mortgage Pros is a purchase driven lender that puts buyers first ahead of refinances. Call us today or apply on line at www.MortgageProsUs.com to get your best rate.

What Are Rates Likely to do?

Mortgage Rates improved a little this morning thanks to the Fed reiterating its New Year's Resolution to purchase $500 Billion of Mortgage Backed Securities by June 2009.  If the Fed does actually make these purchases mortgage bonds should rebound thus driving mortgage rates lower.  Currently, there is little confidence in mortgage backed securities.  If the Fed buys these securities it will start a ripple effect in the market because investors will feel secure that the Fed will continue to buy if they the investor wants to sell.  With the Fed's new program starting early next month, we should see improved Mortgage rates ahead- But we're likely to see more volatility as the New Year begins.

Lock and Float Down!  The peace of mind of knowing you are getting the best rate.

As we have all seen, mortgage rates are very volatile. One day the are down and the next day they are up. I want my  customers to have the best  possible rate. Lock in a rate today and if the rate goes up - you are safe. If the rate goes down - I will drop the rate to the lowest rate possible prior to closing. Certain conditions apply, call for the details. 

Jumbo Mortgages - Ask Us about our January Jumbo Mortgage Promotion!  Call me now 972-661-5136

www.MortgageProsUs.com  

First-Time Buyers should take advantage of the $7500 tax credit.

Many home buyers in the market for a home may be short on cash after making a down payment.  Paying for furniture and moving expenses can add up fast.  Thanks to newly enacted legislation providing a tax credit of as much as $7500 for first-time home buyers, that struggle just became a little easier.

But like so many of the good things in life, time is of the essence for buyers who want to take advantage of this outstanding opportunity. Only homes purchased on or after April 9, 2008 and before July 1, 2009 are eligible.

Here is a link to Frequently Asked Questions About the First-Time Home Buyer Tax Credit 

The National Association of Homebuilders but together a great site with lots of information.  Here is the web address,    http://www.federalhousingtaxcredit.com/index.html

Mortgage rates are incredibly low so this is a perfect time to buy a home, especially for first-time home buyers.  Happy House Hunting!

Call me for a free initial consultation or apply on line at www.MortgageProsUs.com   972-661-5136 or toll free 866-430-7767